REPUBLIKA.CO.ID, JAKARTA -- After conducted an initial public offering (IPO), Indonesia's largest herbal medicine makers, PT Industri Jamu dan Farmasi Sido Muncul Tbk (SIDO) plans to form franchises abroad. This is an opportunity for Indonesian company to introduce national herbal products to the world.
"It is our goal. Indonesian companies mostly buy foreign franchises, but we want to sell our own franchise," President Director of Sido Muncul, Irwan Hidayat said on Wednesday.
Hidayat said that German companies for example were interested to buy Sido Muncul franchise. Herbal products are very potential to be a franchise. However, Sido Muncul previously has not made an IPO, so other companies are hard to work together. Now, the obstacles have been overcome.
Sido Muncul listed its 1.5 billion shares at 580 IDR per share. In the first trading this morning, the share rose 80 points to 660 IDR per share. Company plans to get funds worth 870 billion IDR from this IPO.
About 42 percent of IPO proceeds will be used for investment, while 56 percent for working capital and the rest for information technology development and computerized system. The owner of jamu (herbal medicine) Tolak Angin will expand existing plant to increase its production capacity. The plant will be built on 10 hectares lands for raw material plant of Tolak Angin.
The construction is expected to increase four time production capacity. It will begin in early 2014 and operate in next 1.5 years. The plant machines are being imported from Germany. Sido Muncul has been exporting its products to several countries, such as United Kingdom, United States, Suriname, India and Australia. Company plans to change Tolak Angin image, from a herbal medicine to herbal health drink to young generation.
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